Bangladesh’s bulk ferrous scrap imports moved up by 21% to 0.29 mn t in Nov’20 compared with 0.24 mn t in Oct’20. Imports witnessed a third monthly successive hike, as per vessel line up data maintained with SteelMint. Active restocking ahead winters and recovery in the domestic steel market resulted in increased imports.
Out of the total of twelve bulk vessels arrived in Nov’20, 0.20 mn t was imported from USA in Nov’20. Japan remained the second largest source for Bangladesh scrap imports and exported five vessels with 0.07 mn t of scrap followed by Brazil at 0.02 mn t.
Domestic finished steel prices have improved slightly as compared to last month. According to market insiders demand has increased in October, considering the winter season is a favourable time for construction activities, which resulted in increased scrap imports.
Japanese bulk scrap offers for Bangladesh have continued to strengthen on strong domestic demand and tight availability. SteelMint’s assessment for bulk Japanese monthly average bulk H2 scrap price has increased by $30/t m-o-m basis in Nov’20, as per data maintained with SteelMint.
Quantity in mn t
Source: SteelMint vessel line up provisional data
Outlook – During Oct-early Nov’20, Bangladesh based mills have booked over 170,000 t bulk scrap, as per bookings recorded by SteelMint. Bangladeshi mills have actively restocking cargo in order to avoid scarcity due to winter shortage. Due to limited bulk scrap offers from Japan, Bangladesh mills turned to other origins like – US, UK and Australia.
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